Assemblymember Rick Chavez Zbur (D-Hollywood) and State Sen. Ben Allen (D-Santa Monica), along with Assemblymembers Isaac Bryan (D-Los Angeles) and Sharon Quirk-Silva (D-Fullerton), and Senators Caroline Menjivar (D-San Fernando Valley), Sasha Renee Perez (D-Pasadena) and Henry Stern (D-Los Angeles), held a press conference this week uniting legislators, workers, small businesses, industry leaders and more to support the California Film & TV Jobs Act, AB 1138 & AB 630.
The legislation directly addresses the growing threat of production flight, resulting in significant job losses and a substantial economic impact across California. AB 1138 and SB 630 seek to reverse this trend by making California’s tax credit program more competitive with other states and countries, supporting small businesses and thousands of union jobs tied to the entertainment industry.
In late 2024, Governor Newsom announced a budget proposal to increase the State’s incentive program from the current annual allocation of $330 million to $750 million, beginning on July 1, 2025. The authors have been working with the Entertainment Union Coalition – a multi-union alliance representing more than 165,000 entertainment workers – and other stakeholders to modernize the program. To enhance the effectiveness of the increase, AB 1138 makes modifications to the program’s requirements, aiming to make California more competitive.
Key Provisions of the legislation include:
- Raising the base tax credit rate from 20% to 35%
- Maintaining tax uplifts in the current programs, including the 5% uplift for filming outside the Los Angeles Zone
- Expanding the definition of “Qualified Motion Picture” while retaining the $1 million minimum spending requirement per production to include 20-minute television shows, animation, and certain large-scale competition shows
- Eliminating the 50% Ownership or 10-year lease requirement for productions utilizing a certified sound stage in the Soundstage Film Tax Credit program
- Increasing incentives for Independent Productions
- Providing the California Film Commission with more flexibility to move tax credit dollars across different categories to meet current demands.
“California’s film and television industry is at a breaking point — and AB 1138 and SB 630 are about saving good jobs and protecting the workers and small businesses who built this iconic industry,” said Zbur. “Our goal is simple: make California’s Film and TV Tax Credit program competitive again, bring back lost productions, and keep families working here at home. I am immensely grateful to my colleagues and to Governor Newsom for their efforts to fight for California jobs, California communities, and California’s future.”
“We know how economically impactful our entertainment industry is, not just for Los Angeles but for the state as a whole,” said Allen. “It was great seeing this recognition recently through the strong support of committee members who represent regions across California. We all share a common goal as provided through SB 630 and AB 1138—bringing overdue support to a vital workforce which has seen production leave our state in droves over recent years.”
“California’s film and television industry has long been a driving force behind our economic success. It is a vital part of what helped us become the fourth-largest economy in the world,” said Quirk-Silva. “I want to thank my legislative colleagues who have rallied around the support for this initiative in keeping California the heart of the entertainment world.”
“My district is home to some of the world’s largest studios, which brings jobs, tax revenue, artists, and groundbreaking innovation in the entertainment industry to Burbank and San Fernando Valley,” said Menjivar. “It is also home to the workers, from food vendors to grips to electricians, that are behind the magic. California must secure the future of this industry in our state, and modernizing the Film & Tax credit program will ensure the jobs, operations, and the economic benefits they bring right here in California.”
“California has a proud history of partnering with industries like tech, auto and aerospace to grow our economy and protect workers,” said Senator Lola Smallwood-Cuevas (D-Los Angeles). “We must take the same approach with the film and television industry to keep homegrown jobs here. I authored SB 756 to support the expansion of the California Film & TV Tax Credit Program while ensuring that it comes with stronger transparency and accountability to workers and voters. This bill is about making sure our tax dollars not only create entertainment content, but build real careers and economic diversity in local communities. We can grow the industry and protect workers—all while being responsible stewards of California’s resources.”
“Hollywood is part of the soul of our state, but after the Eaton Fire, many in my district are facing job losses and community instability,” said Assemblymember John Harabedian (D-Pasadena). “Thousands of workers and small businesses in Los Angeles rely on a steady flow of film and television production to survive. This legislation will expand union jobs, provide critical support for small businesses that serve the industry, and strengthen our economy by keeping productions here at home. Thank you to Assemblymember Zbur and Senator Allen for their leadership in protecting and growing California’s entertainment industry.”
“From humble beginnings over a century ago, the film and tv industry has grown into a global powerhouse that’s essential to California’s economy,” said Assemblymember Nick Schultz (D-Burbank). “By expanding and modernizing the tax credit, we’re investing in a homegrown industry, our skilled and creative workforce, and countless small businesses beyond the studio gates.”
“When people think of Hollywood, they often picture celebrities—but I think of the people in my community who work behind the scenes: set builders, camera operators, costume designers,” said Senator Suzette Valladares (R-Santa Clarita).“These are hardworking Californians who depend on local production to support their families. That’s why it’s so important we keep film and TV jobs in California—our policies need to protect this vital part of our economy and the people it employs.”
AB 1138, this week, passed the Assembly Committee on Arts, Entertainment, Sports, & Tourism and now heads heads to the Assembly Revenue and Taxation Committee for further consideration.
